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International Paper Posts Upbeat Q1 Earnings, But Sales Miss Views

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International Paper Co (NYSE: IP) reported better-than-expected earnings for the first quarter, but the company's revenue misses analysts' estimates.

The Memphis, Tennessee-based company reported quarterly earnings of $313 million, or $0.74 per share, versus a year-ago loss of $95 million, or $0.21 per share. Excluding special items, the company's operating earnings gained to $0.84 per share from $0.60 per share.

Its sales slipped 3.6 percent to $5.52 billion. However, analysts were expecting earnings of $0.80 per share on revenue of $5.8 billion.

The average estimate among 6 Estimize users was for earnings of $0.77 per share and revenue of $5.89 billion.

Profit at its industrial-packaging segment rose to $468 million from $453 million, while profit at its printing papers unit climbed to $109 million in the latest quarter, versus a year-ago loss of $410 million.

"International Paper delivered another strong quarter through good execution and cost management that resulted in increased margins," said Mark Sutton, Chairman and Chief Executive Officer. "Our North American Packaging businesses, as well as our Ilim joint venture, performed very well. Looking ahead, we will continue to focus on long term value creation by generating strong free cash flow, making sound strategic investments and returning cash to shareholders."

International Paper shares closed at $53.46 yesterday.

Posted-In: profitEarnings News


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